© Dukascopy Bank SA
"The Fed seems to have downgraded their overall economic assessment, thus capping the dollar."
- Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
After a volatile session yesterday USD/CAD is still trying to get a foothold above the zone at 1.0295/86, which is needed for the pair to rechallenge the closest resistance at 1.0339/36, although a serious test of the upside momentum is going to be performed at 1.0447—2012 high. In the meantime, the falling trend-line at 1.0262 should limit any dip in the near term.
Traders' Sentiment
The difference between the shares of long and short positions narrowed only marginally. The latest data suggest that the percentage of bulls totals to 73%, while bears take up merely 27% of the market. Among the pending orders, 57% are to acquire the U.S. Dollar and 43% are to sell it.
© Dukascopy Bank SA